Government Implements First Pre-Isolation During Rice Growth... "20,000ha Rice Paddy Area to Be Used for Feed"

Proactive Supply and Demand Measures Ahead of Rice Harvest Season
Announced at the Earliest Time Since 2005

Mid- to Long-Term Plans to Stabilize Hanwoo Supply
Proposed Livestock Act Amendments to Be Pursued Within the Year

The government will start identifying the expected rice production volume in advance from this year to stabilize rice prices early. Before the main harvest season, it will identify surplus production and proceed with market isolation to quickly respond to rice price declines. In the process of stabilizing the supply and demand of Hanwoo amid growing concerns about oversupply, consumption will be promoted and the number of cows will be reduced. Mid- to long-term development plans will also be pursued to maintain a 40% self-sufficiency rate for domestic beef.

On the 10th, the Ministry of Agriculture, Food and Rural Affairs announced the 'Rice Supply and Demand Stabilization Measures' and 'Hanwoo Supply and Demand Stabilization and Mid- to Long-term Development Plans' at the Min-Dang-Jeong consultation meeting.

Choi Myung-chul, Director of Food Policy at the Ministry of Agriculture, Food and Rural Affairs, is explaining the 'Rice Supply and Demand Stabilization Measures' at a briefing held on the 9th. /

The government has announced supply and demand stabilization measures every October during the rice harvest season. When Statistics Korea announces the expected rice production volume for the year that month, the government estimates demand and presents countermeasures for any surplus. This year, the measures were announced a month earlier, the earliest since 2005. In years of rice overproduction, rice prices tend to fall from September before measures are announced, causing delayed responses; this will be improved starting this year.

Based on the predicted surplus rice production for this year, the government will proceed with market isolation. First, it will purchase 100,000 tons of newly harvested rice produced from 20,000 hectares of rice cultivation area and dispose of it for feed and other uses. If surplus production beyond the pre-isolation amount is identified after the expected production volume is announced by Statistics Korea in early October, this surplus will also be isolated. After the final production volume is announced by Statistics Korea in mid-November, additional measures will be introduced as necessary, considering market conditions.

Choi Myung-cheol, Director of Food Policy at the Ministry of Agriculture, Food and Rural Affairs, said, "The survey of this year's expected rice production volume indicates it will be at or above the average or last year's level. Since we announced the measures preemptively at the earliest time ever, we expect to alleviate field concerns about rice overproduction early."

In stabilizing Hanwoo supply and demand, large-scale discount events will be held, and support for supplying Hanwoo raw meat to school meal and processing companies will be expanded to promote consumption. Additionally, to ease the burden on farmers facing rising feed costs, feed purchase funds will be maintained at around 1 trillion won next year. To resolve oversupply, in addition to the existing reduction of 139,000 heads, an additional 10,000 cows will be reduced.

Kim Jung-wook, Director of Livestock Policy at the Ministry of Agriculture, Food and Rural Affairs, said, "Hanwoo demand has a price elasticity of about 1.17, which is higher than that of general agricultural products. Studies show that if prices fall by 10%, demand increases by 17%." He added, "We believe that discount events will correspondingly increase demand."

Kim Jeong-wook, Director of Livestock Policy at the Ministry of Agriculture, Food and Rural Affairs, is explaining the "Hanwoo Supply Stability and Mid- to Long-term Development Plan" at a briefing held on the 9th. /

The Min-Dang-Jeong coalition has also prepared mid- to long-term measures to improve the recurring supply and demand instability of rice and Hanwoo. Since rice consumption is expected to continue declining, plans are underway to adjust rice cultivation areas by considering a cultivation area reporting system and regional reduction area allocations. A system will be established that provides incentives to farmers who participate in cultivation area adjustments and penalties to those who do not comply.

To increase the production of high-quality rice, measures such as strengthening the rice grading system and protein content labeling will be considered, shifting the rice production focus from quantity to qualitative growth. Plans to diversify rice consumption to create new demand and strengthen the accountability of distribution entities will also be reviewed. Since consensus among field farmers is necessary, the government plans to consult with producer organizations and others to present detailed measures by the end of the year.

For Hanwoo, mid- to long-term development plans aiming to maintain a 40% self-sufficiency rate for domestic beef will be pursued to resolve structural supply and demand instability and prepare for the elimination of beef tariffs. The Hanwoo breeding period will be shortened to reduce production costs, and smart farms will be increased to 30% by 2027 to improve productivity. Considering Hanwoo's long growth characteristics, an early warning system will be established from the calf production stage three years prior, and if oversupply is expected, production suppression and breeding reduction will be implemented. Incentives and penalties will be given to compliant and non-compliant farms, respectively.

To strengthen linkage with wholesale and retail prices, the price-leading function of the NongHyup (National Agricultural Cooperative Federation) will be enhanced. Online transactions and direct transactions will also be increased. New Hanwoo consumption markets will be developed by revitalizing the aged meat market and expanding export markets. Based on consultations with the Hanwoo Association, the Livestock Act amendment bill, which was introduced by Representative Jo Kyung-tae of the People Power Party, is also planned to be promoted within the year.

This content was produced with the assistance of AI translation services.